If you can’t handle Swings, you deserve the Mediocre Result.
According to Charlie Munger, when you have the opportunity to buy assets at a huge discount, it’s crucial to seize the moment to the best of your ability, and not leave your money sitting on the sidelines while you wait for things to get better.
The legendary investor goes on to say – if you’re not willing to keep your chin up during the occasional rout, he continued, “you’re not fit to be a common shareholder, and you deserve the mediocre result you’re going to get compared to the people who can be more philosophical about these market fluctuations.”
Yes, No, and Too Complicated
“Charlie Munger used to say that things fall into three categories: yes, no, and too complicated to figure out,” says Josh Friedman, the co-founder of Canyon Partners, a Dallas-based hedge fund which oversee more than US$24 billion in assets under management.
Friedman acknowledges Munger’s three-pronged observation, which he describes this way: “You have to be patient, and you have to be aggressive when the opportunities are abundant, and you have to be quite disciplined at a time when they’re not.”
The legendary investor goes on to say – if you’re not willing to keep your chin up during the occasional rout, he continued, “you’re not fit to be a common shareholder, and you deserve the mediocre result you’re going to get compared to the people who can be more philosophical about these market fluctuations.”
Yes, No, and Too Complicated
“Charlie Munger used to say that things fall into three categories: yes, no, and too complicated to figure out,” says Josh Friedman, the co-founder of Canyon Partners, a Dallas-based hedge fund which oversee more than US$24 billion in assets under management.
Friedman acknowledges Munger’s three-pronged observation, which he describes this way: “You have to be patient, and you have to be aggressive when the opportunities are abundant, and you have to be quite disciplined at a time when they’re not.”